Minister of Finance and the Public Service, Audley Shaw, has disclosed that the Government has reviewed the motor vehicle import policy, and has decided to modify the limitations imposed on the 20 per cent motor vehicle duty concession to public sector travelling officers, which was included in the 2008/2009 budget.
“The Government has reviewed that policy and we have decided to make a modification. It will not go exactly back to the original policy. It will still be modified in terms of the cc rating (of the vehicles),” Mr Shaw said.
“We will move the cc rating from 2,500 cc to 3,000 cc and in respect of the diesel vehicles; it will be moved from 2,500 cc to 3,200 cc. In terms of the CIF ceiling, it will be as it was before. The CIF will be US$25,000 and will attract the 20 per cent concession,” he added.
Mr. Shaw also stated that for anything above the US$25,000 in terms of the cost of the vehicle, full duty will apply. He also stated that the Ministry of Finance and the Public Service, will send out a circular outlining the changes made.
The Minister of Finance was speaking yesterday (Sept. 11) during a ceremony held to sign the new two-year wage agreement (2008/10), between the Government and the Jamaica Police Federation, held at the Ministry’s National Heroes Circle Offices.
Mr. Shaw explained that the motor vehicle concession is considered to be part of benefits provided to public sector employees by the Government, having regard to the “relatively modest pay structure” that exists in the sector.
“It is not a benefit that should be transferred to other people and we are really asking organisations to assists us in ensuring that the system is not abused and that only the people for whom the benefits are intended are the persons who must receive the benefits,” Mr Shaw stressed.
The Minister had announced in his 2008/09 Budget Debate presentation that the Government planned to limit the 20 per cent concession on vehicles to a CIF value of a maximum of US$25,000 and an engine size of the maximum of 2500 cc.